Benzinga
Published Nov 16, 2023 16:00
Updated Nov 16, 2023 17:10
Exploring The Competitive Space: ARM Holdings Versus Industry Peers In Semiconductors & Semiconductor Equipment
Benzinga - by Benzinga Insights, Benzinga Staff Writer.
In the dynamic and cutthroat world of business, conducting thorough company analysis is essential for investors and industry experts. In this article, we will undertake a comprehensive industry comparison, evaluating ARM Holdings (NASDAQ:ARM) and its primary competitors in the Semiconductors & Semiconductor Equipment industry. By closely examining key financial metrics, market position, and growth prospects, our aim is to provide valuable insights for investors and shed light on company's performance within the industry.
ARM Holdings Background Arm Holdings is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.
ARM Holdings PLC | 315.71 | 11.91 | 20.02 | -2.45% | $-0.12 | $0.76 | 27.94% |
NVIDIA Corp | 118.14 | 43.93 | 37.29 | 23.79% | $7.41 | $9.46 | 101.48% |
Taiwan Semiconductor Manufacturing Co Ltd | 18.87 | 4.91 | 7.61 | 6.46% | $392.33 | $296.64 | -10.83% |
Broadcom Inc | 30.04 | 18.25 | 11.51 | 14.98% | $4.91 | $6.16 | 4.87% |
Advanced Micro Devices Inc | 1072.73 | 3.47 | 8.66 | 0.54% | $1.13 | $2.75 | 4.22% |
Qualcomm Inc | 19.78 | 6.65 | 4.05 | 7.05% | $2.06 | $4.75 | -24.26% |
Texas Instruments Inc | 19.67 | 8.29 | 7.68 | 10.44% | $2.34 | $2.81 | -13.53% |
Analog Devices Inc | 24.60 | 2.51 | 7.18 | 2.44% | $1.53 | $1.96 | -1.07% |
Microchip Technology Inc | 18.09 | 6.41 | 5.10 | 9.66% | $1.1 | $1.53 | 8.74% |
STMicroelectronics NV | 9.82 | 2.67 | 2.47 | 7.28% | $1.69 | $2.11 | 2.55% |
GLOBALFOUNDRIES Inc | 22.11 | 2.88 | 4.09 | 2.34% | $0.64 | $0.53 | -10.7% |
ON Semiconductor Corp | 14.34 | 4.09 | 3.83 | 8.05% | $0.87 | $1.03 | -0.54% |
United Microelectronics Corp | 8.80 | 1.75 | 2.59 | 4.72% | $29.0 | $20.46 | -24.3% |
ASE Technology Holding Co Ltd | 16.07 | 2 | 0.98 | 3.06% | $28.07 | $24.92 | -18.27% |
First Solar Inc | 34.47 | 2.58 | 5.16 | 4.35% | $0.37 | $0.38 | 27.37% |
Skyworks Solutions Inc | 15.35 | 2.47 | 3.16 | 4.09% | $0.4 | $0.48 | 13.78% |
Lattice Semiconductor Corp | 39.90 | 13.37 | 11.43 | 8.96% | $0.06 | $0.13 | 1.1% |
Universal Display Corp | 37.96 | 5.61 | 13.26 | 3.77% | $0.06 | $0.11 | -12.13% |
Rambus Inc | 25.39 | 7.48 | 15.90 | 10.86% | $0.12 | $0.08 | -6.19% |
MACOM Technology Solutions Holdings Inc | 63.98 | 6.15 | 9.03 | 2.63% | $0.05 | $0.09 | -15.59% |
Allegro Microsystems Inc | 22.03 | 5.02 | 5.21 | 6.18% | $0.09 | $0.16 | 15.92% |
Average | 81.61 | 7.52 | 8.31 | 7.08% | $23.71 | $18.83 | 2.13% |
table { width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 14px; }
th, td { padding: 8px; text-align: left; }
th { background-color: #293a5a; color: #fff; text-align: left; }
tr:nth-child(even) { background-color: #f2f4f8; }
tr:hover { background-color: #e1e4ea; }
td:nth-child(3), td:nth-child(5) { text-align: left; }
.dividend-amount { font-weight: bold; color: #0d6efd; }
.dividend-frequency { font-size: 12px; color: #6c757d; } Through an analysis of ARM Holdings, we can infer the following trends:
Debt To Equity Ratio
The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In light of the Debt-to-Equity ratio, a comparison between ARM Holdings and its top 4 peers reveals the following information:
Key Takeaways ARM Holdings has a high PE ratio, indicating that its stock price is relatively high compared to its earnings. The high PB ratio suggests that the stock is trading at a premium to its book value. The high PS ratio indicates that the stock is trading at a premium to its sales. The low ROE suggests that the company is not generating a high return on its shareholders' equity. The low EBITDA and gross profit indicate that the company's profitability is relatively low. However, the high revenue growth suggests that the company is experiencing strong sales growth compared to its peers in the Semiconductors & Semiconductor Equipment industry.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read the original article on Benzinga
Written By: Benzinga
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.